Online Trading India

Mutual Funds

Share Market

Credit Card

Look What Japanese Brokerage Has Estimated Regarding Huge Loan Waivers

Amid the rash of loan waivers, Japanese brokerage Nomura today estimated over 65 per cent of the total Rs 9.50 lakh crore of agri debt may potentially get written-off.

“With expectations of a waiver now increasing in other states, there is a possibility of agri stress increasing elsewhere, especially poll-bound states,” it added.

It also stated that 85 per cent of it is with state-run banks, including the commercial lenders and the regional rural banks.

Maharashtra followed Uttar Pradesh in announcing a debt waiver for the farmers, which is expected to drill a Rs 30,000 crore hole for the state exchequer, over the weekend. While UP had announced a Rs 36,500 crore waiver for a select few farmers, Maharashtra is aiming to give a blanket one.

It can be noted that a massive agitation is underway in pockets of Madhya Pradesh for similar relief.

The brokerage said the grain bowl of Punjab is also finalising its debt waiver scheme, while there are demands in Madhya Pradesh and Tamil Nadu to extend debt waiver applicable to loans taken from co-operative banks to the commercial banks.